Longevity Pay

Longevity Pay

The higher pay one earns for remaining at the same company for a certain period of time. For example, one may receive a raise after six months, one year, two years and so forth. Proponents of longevity pay believe it encourages stability and lowers the employee turnover rate. Critics contend longevity pay discourages innovation by rewarding those who take few risks and are merely "good enough" to stay.
References in periodicals archive ?
The Magna Carta bill proposes to grant PDEA officers and personnel to receive the following allowances aside from their basic salary based on the Salary Standardization Law: monthly PHP2,000 personnel economic relief allowance (PERA); PHP5,000 clothing allowance; PHP1,500 uniform allowance; hazard pay equivalent to 30 percent of the basic monthly salary; combat pay equivalent to 25 percent of basic monthly salary; representation and transportation allowances; longevity pay; and special counsel allowance ranging from PHP1,250 to PHP4,000 per month.
The bill provides that both new entrants and those in the active service, upon their retirement, shall be entitled to receive a monthly retirement pay equivalent to two and a half percent for each year of active service rendered, but not exceeding 90 percent of the monthly base and longevity pay of the grade higher than the permanent grade they last held.
Uniformed personnel also enjoyed increases in other allowances -- longevity pay, flying pay, sea duty pay, and instructor's duty pay.
For those wounded or killed in action, the pension rate will be raised to 90 percent of base pay plus longevity pay regardless of years of active service, the proposal read.
Earlier this month, Mayor Herbert Bautista signed an ordinance providing an increase in teachers' longevity pay from P100 to P400 for every five years of continuous service within public schools in the city.
He also claims the village did not include longevity pay and acting out-of-rank pay in other firefighters' regular rate of pay, which led him and others to not receive the full benefit of their time and one-half overtime rate.
It will include two separate 2 percent across-the-board pay increases, and compensate them for longevity pay, which had been frozen under Christie.
McRaven, Sharp, Young and Fenves' compensation held relatively constant from the 2016 fiscal year; McRaven's pay ticked up by $140 -- longevity pay, according to the Chronicle -- and Young's remained unchanged.
The lack of flexibility regarding compensation is highlighted by pending lawsuits related to the wage freeze (mentioned above), longevity pay and the computation of overtime.
The county has already sued to challenge whether document it signed by then Nassau County Chief Deputy Executive Rob Walker related to longevity pay are binding.
* Repeal the Triborough Amendment's longevity pay guarantee
Budget Secretary Benjamin Diokno earlier said the increase in the base pay would "result in increases in other allowances and bonuses that are computed as a percentage of Base Pay such as Longevity Pay (or Foggy Pay), Mid-Year Bonus, Year-End Bonus, and will effectively discontinue the grant of provisional and officers' allowances, an interim measure pending the modification of the base pay schedule."